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Fixed income futures: Adjustment of the obligations for performance for the delivery of Euro-Fixed Income futures contracts on debt securities of the Federal Republic of Germany

Release date: 30 Apr 2020 | Eurex Exchange

028/2020 Fixed income futures: Adjustment of the obligations for performance for the delivery of Euro-Fixed Income futures contracts on debt securities of the Federal Republic of Germany

Eurex Circular 028/20

1.  Introduction

The Management Board of Eurex Deutschland took the following decision with effect from 9 June 2020:

  • Adjustment of the Contract Specifications for Futures Contracts and Options Contacts at Eurex Deutschland (Contract Specifications)

The debt securities of the Federal Republic of Germany must have a minimum issue volume of €5 billion until and including the December 2020 contract expiry, with the introduction of the March 2021 contract expiry, the debt securities of the Federal Republic of Germany must have a minimum issue volume of €4 billion.

2.  Required action

None.

3.  Details

In December 2019, the German Finance Agency announced that the Federal Republic of Germany intends to issue Green German Government securities in the second half of 2020, designed in the form of so-called green twin bonds. As part of its standard market presence, the German Federal Government will issue both a conventional and a green security with the same maturity and coupon.

The German Federal Government intends to establish a liquid, green interest rate reference for Europe. In principle, for each green twin bond, an outstanding volume of a minimum of €4 billion is intended.

Based on this decision, the Management Board of Eurex Deutschland decided to amend the Contract specifications with the introduction of the March 2021 contracts (as of 9 June 2020) to include those green twin bonds of the Federal Republic of Germany to be deliverable into the German Euro-Fixed Income futures contracts.

With this adjustment, Euro-Fixed Income Futures contracts on German debt securities will be the first fixed income derivatives futures to allow green bonds for delivery.

Attachment: 

  • Amended sections of the Contract Specifications for Futures contracts and Options Contacts at Eurex Deutschland

Further Information

Recipients:All Trading Participants of Eurex Deutschland and vendors
Target groups:Front Office/Trading, Middle + Backoffice, IT/System Administration, Auditing/Security Coordination
Contact:Product R&D Fixed Income, Jutta Frey-Hartenberger, tel. +49-69-211-1 49 88, jutta.frey-hartenberger@eurexchange.com; 
Fixed Income Sales, Vassily Pascalis, tel. +44-207 862 7211, vassily.pascalis@eurexchange.com
Web:www.eurexchange.com
Authorised by:Randolf Roth

 

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